I have been giving the call on EPC Ind since long around 35 , a drip irrigation Co.
Today even in bad market it is still up by over 100% and M&M is taking stake at Rs 66.00 for 38% and thus becoming the promoters of EPC Ind.I am happy to see that my call is good enough to become a takeover target of an Indian Multinational Co, M&M.......
M&M to acquire 38% stake in EPC Industries
By PTI Feb 09 2011 , New Delhi
Tags: EPC, M&M, Companies
Diversified firm Mahindra & Mahindra (M&M) today said it will acquire 38 percent stake in EPC Industries for Rs 43.35 crore to mark its foray into the micro irrigation business.
"The board of M&M approved the acquisition of 38 per cent equity in EPC Industries... The acquisition is through preferential allotment of shares by EPC," the auto major said in a filing to the Bombay Stock Exchange (BSE).
The company would be making an open offer to EPC's shareholders for acquiring 20 per cent of the enhanced share capital of the firm, it added.
Micro irrigation is a water efficient technology that reduces the usage of the natural resource, while improving the productivity in agriculture.
"The company would subscribe to 65,58,065 fully paid-up equity shares of the face value of Rs 10 each of EPC, on a preferential basis, at a price of Rs 66.10 per share," the filing said.
On the completion of the preferential allotment and the open offer, M&M would be acquiring the management and control of EPC and would be classified as promoter of EPC.
Commenting on the deal, M&M President (Automotive and Farm Equipment Sectors) Pawan Goenka said: "With rising population and reducing water availability, micro irrigation is an important method to reduce water consumption in agriculture to raise agriculture productivity in the country."
Established in 1981, EPC is currently present in over 12 states and sells many equipments, including dip irrigation systems and industrial pipes.
"A revitalised EPC will now have the opportunity to play a very important role in helping the farmer community to improve yields and manage the water resources more meaningfully," EPC Industries Promoter K Khanna said.